Before You Buy A Car, Discover What Kind of Buyer You Are

This short article will help you evaluate what kind of buyer you are, and what you need to keep in mind when you buy a car.

If you want to save money while you are negotiating as you buy a car, you should negotiate from the dealer cost up and not from the MSRP down.  Dealer cost is not the same as the factory invoice.

What to do if they don't want to bargain?

Some dealerships refuse to haggle over the cost of a car. Once you make your opening offer you should never accept anything higher than that, as far as costs go.

If the dealership that you go to doesn't haggle, don't sweat it, some other dealership will.

If they are making such a big profit, why won't they come down lower?

The reason some dealerships refuse to haggle is because they want to add extra fees to the MSRP. You will need to decide what kind of buyer you are in order to get a negotiating stance.

You do not want to set yourself up as a monthly payment buyer either because that is a guaranteed way for you to get a higher payment fee.

Your dealer will offer to take a little bit off of the MSRP.  In return, they will then ask you what you are looking to pay each month; this is where the extra money comes in - for them!

Are you paying by cash?

Cash buyers are generally asked, "Are willing to pay each month?"

Tell them it doesn't matter because you are looking for an even division on the cost of the car, not to haggle over the monthly cost.  It's the cost of the car, not the monthly payments, that are more important to you.

If a finance manager tries to get you to report your payment method before you have decided upon purchasing the car, don't get sucked into it.

What is the best way to pay?

The method of payment doesn't matter unless you are deciding upon purchasing the car. Finance managers ask so that that they can best decide how to get their best deal.

Some dealers will offer you to give you a better deal if you finance your car through them. I can guarantee that this will not be the case. 

Are you an 'impulse buyer'?

That's the worst kind - for your interests.  An impulse buyer is just another word for "victim."

Impulse buyers can often get sucked into the "hot" car of the moment and usually get taken for as much as $10,000. A dealer can see this buyer coming from a mile away.

Make it clear you are not interested in the latest model 'hot' car because it will not be worth the money next year as the new "hot" car will be out by then.
You don't want to buy a car that is in demand because it is the easiest way for a dealership to mark up the prices. The MSRP always looks low, but it is the extras and monthly payments that will lose you money.

Remember the resale value of the car doesn't change no matter how much money you bought the car for. It still depreciates in value from the factory invoice.

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